Blackstone Joins $35B AI Compute Fund, Becomes Active Credit Protection Buyer
BX sits 18% above its 52-week low of $101.73.
Summary
Blackstone has committed as an initial capital partner to a new $35 billion AI infrastructure fund, alongside Broadcom and Apollo, aiming to finance over 20 GW of global AI compute capacity by 2028. This strategic investment, involving Blackstone's credit and insurance units, follows the company's recent $5 billion joint venture with Google for a TPU Cloud and the successful closing of its $13.1 billion Asia private equity fund. Additionally, Blackstone is actively buying single-name credit protection (SRTs) as banks increase hedging of loan exposure, indicating a proactive strategy in the credit markets. The substantial AI fund further solidifies Blackstone's position in a high-growth sector, while the SRT activity highlights its dynamic engagement in managing credit risk and seeking opportunities.
At the time of this announcement, BX was trading at $119.90 on NYSE in the Finance sector, with a market capitalization of approximately $146.9B. The 52-week trading range was $101.73 to $190.09. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Wiseek News.